Intermediate Gold Producer in Prolific Gold Mining Camp

Transcription

1 Intermediate Gold Producer in Prolific Gold Mining Camp TSX / AIM: March KGI 2014

2 KIRKLAND LAKE GOLD INC. CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS Cautionary Note Regarding Forward Looking Statements This presentation contains statements which constitute forward-looking statements, including statements regarding the plans, intentions, beliefs and current expectations of the Company with respect to the future business activities and operating performance of the Company. The words may, would, could, will, intend, plan, anticipate, believe, estimate, expect and similar expressions, as they relate to the Company, are intended to identify such forward-looking statements. Investors are cautioned that forward-looking statements are based on the opinions, assumptions and estimates of management considered reasonable at the date the statements are made, and are inherently subject to a variety of risks and uncertainties and other known and unknown factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These factors include the Company's expectations in connection with the projects and exploration programs being met, the impact of general business and economic conditions, global liquidity and credit availability on the timing of cash flows and the values of assets and liabilities based on projected future conditions, fluctuating gold prices, currency exchange rates (such as the Canadian dollar versus the United States Dollar), possible variations in ore grade or recovery rates, changes in accounting policies, changes in the Company's corporate mineral resources, changes in project parameters as plans continue to be refined, changes in project development, construction, production and commissioning time frames, risks related to joint venture operations, the possibility of project cost overruns or unanticipated costs and expenses, higher prices for fuel, power, labour and other consumables contributing to higher costs and general risks of the mining industry, failure of plant, equipment or processes to operate as anticipated, unexpected changes in mine life,, seasonality and unanticipated weather changes, costs and timing of the development of new deposits, success of exploration activities, permitting time lines, government regulation of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims, and limitations on insurance, as well as those risk factors discussed or referred to in the Company's annual Management's Discussion and Analysis and Annual Information Form for the year ended April 30, 2013 filed with the securities regulatory authorities in certain provinces of Canada and available at Should one or more of these risks or uncertainties materialize, or should assumptions underlying the forward-looking statements prove incorrect, actual results may vary materially from those described herein as intended, planned, anticipated, believed, estimated or expected. Although the Company has attempted to identify important risks, uncertainties and factors which could cause actual results to differ materially, there may be others that cause results not be as anticipated, estimated or intended. The Company does not intend, and does not assume any obligation, to update these forwardlooking statements except as otherwise required by applicable law.

3 CORPORATE STRUCTURE SHARES OUTSTANDING 70,150,912 Basic 80,431,743 Fully diluted 52 WEEK RANGE $ week high $ week low MARKET CAP $290 million (Mar 17, 2014, $4.17) CASH BALANCE C$47 million (Mar 11, 2014) DEBT C$120 million convertible debentures (due 2H 2017) DEBENTURES KGI.DB: 6% coupon, $15.00 strike KGI.DB.A: 7.5% coupon, $13.70 strike ANALYST COVERAGE BMO CIBC World Markets Desjardins Securities Dundee Securities Investec Bank Macquarie Capital Mirabaud Pareto Panmure Gordon OWNERSHIP European Institutions 15% NA Institutions 45% Management & Founders 21% Retail 19% MAJOR SHAREHOLDERS Eric Sprott, Equinox, Resolute Funds ABC Funds

4 SAFETY STATISTICS Medical Aid Lost Time Medical Injury Frequency Target A 2009A 2010A 2011A 2012A 2013A 2014 YTD The Company has been recognized as an industry leader in health and safety Number of employees has increased from 250 to 1,250 employees in 5 years New employees to the industry hired in 2012 and 2013 Total Medical Injury Frequency Rate Target for 2014 is 3.5

5 LOCATION ONTARIO, CANADA Geo-politically and socio-economically one of the safest mining jurisdictions in the world Federal Tax decreased in recent years from 25% to 15% Ontario Provincial Tax is 12.5%. Combined tax of 27.5% Ontario is ranked one of the top mining jurisdictions in the world (source: Fraser Institute) Unparalleled access to quality labour and infrastructure Incentive programs e.g. NIER program, rebates up to$1.3m reduce energy

6 PROPERTY POSITION

7 HISTORICAL PRODUCTION Historically produced 21 mm ounces of gold grading 0.44 opt (15.1 g/t) from 5 mines, primarily from the Main/ 04 Break system During peak production, the combined mines produced 800k ounces per year from the same infrastructure (that has been modernized) MINE GOLD OUNCES RECOVERED GOLD OUNCES PER TON Wright-Hargreaves 4,821, Lake Shore 8,602, Teck Hughes 3,709, Kirkland Minerals 1,172, Macassa 3,569, Total 1917 to ,875, (15.1 g/t)

8 COMPANY CLAIMS 13,000 Hectares NEAR SURFACE EXPLORATION (SURFACE TO 1,000 ) TO EXPLORE MULTIPLE MINERALIZED ZONES ASSOCIATED WITH THE AMALAGAMATED BREAK(2 DRILLS)

9 MINE VIEW (Looking North East) #3 SHAFT #2 SHAFT SOUTH MINE COMPLEX 5000 LEVEL 5300 LEVEL HAULAGE RAMP 04 BREAK 08 BREAK

10 RESERVE and RESOURCE - COMPLEX CATEGORY (CAL 2012) TONS GRADE (OPT) GRADE (G/MT) OUNCES Proven Probable 1,361,000 1,869, , ,000 Total P&P 3,230, ,454,000 Measured Indicated 1,094,000 2,719, ,000 1,441,000 Total M&I 3,813, ,871,000 Inferred 2,238, ,157,000 See Kirkland Lake news release dated May 21st, 2013, a copy of which has been filed on SEDAR for further particulars. The contents of the above slide have been verified and approved by the Company s Chief Exploration Geologist, Stewart Carmichael, P.Geo, a qualified person for the purpose of National Instrument , Standards of Disclosure for Mineral projects.

11 RESERVE and RESOURCE SOUTH MINE COMPLEX CATEGORY (CAL 2012) TONS GRADE (OPT) GRADE (G/mT) OUNCES Proven Probable 321,000 1,220, , ,000 Total P&P 1,541, ,000 Measured Indicated Total Measured and Indicated 48% 116% 56% 23,000 1,435, , ,000 1,458, ,000 38% 135% 52% Inferred 1,223, ,000 55% 129% 71% See Kirkland Lake news release dated May 21st, 2013, a copy of which has been filed on SEDAR for further particulars. The contents of the above slide have been verified and approved by the Company s Chief Exploration Geologist, Stewart Carmichael, P.Geo, a qualified person for the purpose of National Instrument , Standards of Disclosure for Mineral projects.

12 PLAN: 6 MONTH MINE PLAN Nov-13 (A) Dec-13 (A) Jan-14 (A) Feb-14 (E) Mar-14 (E) Apr-14 (E) FY2014 (E) Tons Produced 35,328 37,975 32,541 30,216 33,189 32, ,836 Avg. Grade Poured Ounces 9,903 9,726 11,950 11,357 11,637 11, ,743 JANUARY ACTUAL RESULTS: Tons Produced for January ,680 tons o Including Record Hoisting Day 3,118 tons Grade for January ounce per ton Poured Ounces for January ,162 ounces o Including Record Gold Pour 4,000 ounces

13 JANUARY FINANCIAL RESULTS JANUARY S RESULTS JANUARY VS. YTD AVERAGE Gold Sales (Ounces) 14,121 10,500 ounces, +34% Revenue $19.4 M $14.5 M, +34% Cash Flow from Operations $9.5 M $1.5 M, +519% Net Income $0.8 M ($1.1 M), +181% Operating Cost Per Ton $369 $339, +9% Operating Cost Per Ounce $839 $1,104, -24% AICC Per Ounce Produced $1,513 $2,045, -27%

14 OPERATING RESULTS Mining Recovery 403 Ore Processed (kt) tons / day , % 96.4% 96.1% % 95.7% FY 2010A FY 2011A FY 2012A FY 2013A FY 2014E (1) FY 2010A FY 2011A FY 2012A FY 2013A FY 2014E (1) Production Cash Operating Costs Production (koz Au) Grade (opt) Cash Operating Costs (C$ / oz) Operating Costs (C$ / t) $321 $300 $294 $337 $ $1,091 $811 $823 $1,120 $793 FY 2010A FY 2011A FY 2012A FY 2013A FY 2014E Note: estimates shaded in blue (1) Estimated FY 2014 based on H mine plan (2) Estimated Q based on H mine plan (1) (2) FY 2010A FY 2011A FY 2012A FY 2013A Q4 2014E

15 Ounces Produced PRODUCTION GROWTH HISTORY 140,000 Gold Ounces Produced 120, ,000 Since 2011 there s been a 18% YoY Increase 80,000 60,000 40,000 20, Est.

16 $ Cost per ounce MINE PLAN EFFECTS FROM 4Q FY2014 KGI Operating Cash Cost per Oz Produced 1200 $ ($189) ($54) ($26) ($17 ) $26 $ Year to Date Cost/Oz Labour Materials Consultants Other Royalties Estimated Q4 Operating Cash Cost per Ounce Change in Operating Cash Cost per Ounce Cost/Oz * All dollars are Canadian dollars

17 EMPHASIS ON HIGHER RATIONS FROM THE SOUTH MINE COMPLEX FY 2015 ESTIMATE: 66% SMC, 34% MAIN BREAK

18 TOTAL ALL IN CASH COST BREAKDOWN $3,000 KGI AICC per Oz Produced by Month Q3/14 16,000 $2,500 Oz Produced 14,000 Royalties 12,000 Exploration $2,000 10,000 Corporate $1,500 8,000 PP&E Capital Development $1,000 6,000 Production $500 $1,403 $1,187 $839 4,000 2,000 Oz Produced $- Nov Dec Jan -

19 FY 2015 MINE PLAN LEVEL SMC PLAN VIEW

20 FY 2015 MINE PLAN LEVEL SMC PLAN VIEW HAULAGE RAMP to #3 SHAFT TRUCK LOADING CHUTES 5317 MCF 5315/18 MCF 5313 MCF 5413 UC 5401 UC 5417 UC 5321 MCF 5311W MCF 5311E MCF LEGEND ORE ZONE TO MINE IN FY15 EXISTING ORE ZONE 5404UC 5304 MCF 5403 UC 5302 MCF

21 FY 2015 MINE PLAN LEVEL SMC PLAN VIEW 54L (Ramps) HAULAGE RAMP 5417 MCF 5617 UC 5411 MCF 5409 MCF 5413 MCF 5412 LH 5412 MCF Vent Raise 5612 UC 54L (Track Drifts) HAULAGE RAMP LEGEND EXISTING DEVELOPMENT (HAULAGE RAMP) PROPOSED DEVELOPMENT (HAULAGE RAMP TO 57) PROPOSED DEVELOPMENT (5400 LEVEL & RAMPS) 5404 MCF & 5604 UC

22 EXPANSION CAPITAL PROJECTS COMPLETE Dry commissioning of the new ball mill is currently underway Current mil capacity 1,450 tons per day expanded to 2,200 tons per day Battery powered equipment purchased Shaft capable of 3200 tpd (ore / waste) Upgraded compressors Expansion capital is 100% complete as at the end of Q3

23 EXPANSION CAPITAL - PROJECTS COMPLETE #3 SHAFT New hoist added Mill Expansion Battery equipment working 3400 L 3800 L 4250 L 4500 L 4750 L 5025 L 5300 L 5700 L 2475 L 3000 L 3075 L 7000 L Loading pocket automated SOUTH MINE COMPLEX New haulage ramp

24 Million's CAPITAL EXPENDITURES $100.0 $90.0 $80.0 $70.0 Annual Cash Flows Invested in PP&E and Mineral Properties $60.0 $50.0 $40.0 $30.0 PP&E Min Props $20.0 $10.0 $ (Q4E) Fiscal Year Total spent from F2010 to F2014: o PP&E: $136.7M o Mineral Properties: $201.0M Excludes $60M spent in 2013 to buy out 50/50 JV with Queenston Mining (Osisko)

25 EXPLORATION - SURFACE DRILLING

26 EXPLORATION UG DRILLING

27 EXPLORATION UG DRILLING

28 Investment Highlights Proven historical production over 100 years Located in Ontario, one of the safest and lowest risk mining jurisdictions globally Attractive reserve & resource profile New mine plan mining focused on mining to reserve grade to maximize profitability and cash flow Early indications of KPI s turning around Significant capital investment & infrastructure capable moving and processing 2,200 tons per day Significant exploration upside potential to extend mine life well beyond current 10 year mine plan

29 CONTACT FOR FURTHER INFORMATION PLEASE CONTACT: George Ogilvie President, CEO and Director ext John Thomson CFO and Director Lindsay Dunlop Director of Investor Relations